UBS Hit With Currency Manipulation Penalty

UBS confirmed in a statement on Wednesday that it will pay $545 million (?352 million) to settle allegations over the manipulation of the currency markets and the London Interbank Offered Rate (Libor).

The Swiss lender will pay the US Department of Justice (DOJ), the Board of Governors of the Federal Reserve System (Fed) and the Connecticut Department of Banking (CT DOB) in a combined settlement of $342 million (?220 million). It avoided criminal charges related to these allegations.

In a separate case, it will also pay $203 million (?131 million) after it pleaded guilty to wire fraud charges related to Libor (which is the interest rate banks lend to each other at).